And a little update..
First the update, we have confirmation that the ownership structure for the proposed LNG facility after Merrill Lynch (aka Bank of America) is indeed shared 50/50 by InterOil and Clarion Finanz daughter Pacific LNG.
Now, some good messages from the boards:
- Radio New Zealand IOC story
- Russian gas supplies
- Chinese resource buying binge will accelerate
- PNG government sells it stake in Oil Search
- IOC relinquishes 50% of licensed area
Once again the best entry goes to Denitex (post 2). He’s on good form, lately.
- Asia’s dealmakers say a Chinese resource spending spree will accelerate throughout the next 12 months, with Canadian mining and energy companies likely on the shopping list. [From 3.]
- The PNG Government sale of it’s stake in OilSearch is much ado about nothing (and confusion on the boards). The following comes from page 4 of OilSearch year-end report which explains what’s happening, we think:
- “In November 2008, the PNG Government and International Petroleum Investment Company (IPIC), an investment company wholly owned by the Abu Dhabi Government, announced the acquisition by IPIC of exchangeable bonds over the PNG Government’s 17.6% shareholding in Oil Search for a principal amount of A$1.68 billion. The money raised will be used by the PNG Government to finance its full equity component of PNG LNG development costs. The transaction has removed one of the uncertainties in the financing process, namely how the Government will fund its equity share of costs, and it enables the Government to retain its full direct equity holding in the Project. It also introduces a potential new major shareholder to Oil Search. The Company has recently had discussions with IPIC and believes that the relationship will prove to be beneficial to both parties, over time.”
- IOC had to relinquish part of it’s licenses because it didn’t submit an exploration plan. That’s a pity, but they can’t do everything at once and they kept the best parts. And what’s left is pretty large, it takes 2 hours by helicopter to get to the drill site, and beneath, everything is InterOil license area. Good for a couple of decades drilling.